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E*TRADE FINANCIAL Corporation |
The below message was posted to ETFC customers. Looks like my money
is still safe.
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Important News from E*TRADE
This morning we announced that E*TRADE FINANCIAL has strengthened its
capital position and eliminated exposure to the types of mortgage
securities that have been generating business losses, as well as
headlines, over the last several months. This has been accomplished
through a strategic transaction with affiliates of Citadel Investment
Group.
As part of this transaction, E*TRADE has received a $2.5 billion
capital infusion. This transaction, led by affiliates of Citadel, not
only strengthens our capital position but also represents a
significant vote of confidence from one of the world's leading
investment firms. Further, Citadel has removed the entire $3 billion
asset-backed securities portfolio from the Company's balance sheet,
solving our most significant balance sheet issue. Citadel understands
we have been faced with a challenged balance sheet, not a challenged
business.
While we have remained well capitalized by regulatory standards
throughout the current credit storm, we have heard the concerns raised
by our customers. Today, we have taken action to address these
concerns. Our goal throughout this process has been to reinforce
customer confidence and to set the foundation for our future. From
this point forward our customers can be assured that E*TRADE FINANCIAL
has no exposure to securities such as CDOs, Alt-A or second lien asset-
backed securities.
As we turn the page to a new chapter, the reasons that you have chosen
E*TRADE as your financial service provider--industry leading value,
innovative products and strong service-remain as true as ever, and we
will continue to work hard to exceed your expectations today, tomorrow
and well into the future.
We appreciate your business and continued loyalty. Thanks for sticking
with us.
Jarrett Lilien
Acting Chief Executive Officer, E*TRADE FINANCIAL